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Swiss National Bank head confirms intervened to weaken franc

The head of Switzerland's central bank said it intervened in foreign exchange markets in a bid to weaken the franc's rise after Greece imposed capital controls and closed the country's banks.

PHOTO: REUTERS

[BERNE] The head of Switzerland's central bank said it intervened in foreign exchange markets in a bid to weaken the franc's rise after Greece imposed capital controls and closed the country's banks.

Swiss National Bank Chairman Thomas Jordan made the remarks at a finance conference on Monday. He declined to give any details.

A Greek default would likely spark massive safe-haven flows into the Swiss currency and spur the SNB into action.

The SNB this month maintained its policy of negative interest rates and penalties for holding Swiss francs in cash and said it would remain active in currency markets to keep the "significantly overvalued" franc down.